A Case Study of Blue-Collar Worker Retirement Investment Decisions Mark Eldridge Griffin Walden University

A Case Study of Blue-Collar Worker Retirement Investment Decisions Mark Eldridge Griffin Walden University

Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2015 A Case Study of Blue-Collar Worker Retirement Investment Decisions Mark Eldridge Griffin Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Finance and Financial Management Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral dissertation by Mark Griffin has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Steven Tippins, Committee Chairperson, Management Faculty Dr. David Banner, Committee Member, Management Faculty Dr. David Bouvin, University Reviewer, Management Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2015 Abstract A Case Study of Blue-Collar Worker Retirement Investment Decisions by Mark Griffin MBA, TUI University, 2010 BS, Park University, 2006 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management Walden University May 2015 Abstract The finances of blue-collar workers were the most acutely impacted as these workers lost their jobs during the Great Recession of 2007 through 2009. The literature revealed a minimal understanding of how blue-collar workers allocated funds for their retirement, and what their investments might be when they invested. To address this problem, the current qualitative study addressed (a) how blue-collar workers chose to invest or not invest for retirement and (b) how blue-collar workers diversified their portfolio if they chose to invest. Theoretical foundations of the study were based on regret theory and prospect theory. A nonrandom purposeful sample of 10 blue-collar worker participants answered 19 open-ended questions. Data from these questions were analyzed inductively. Findings revealed that, as participants reached the age of 30, they started to consider investing for their retirement. Participants under the age of 30 were not as likely to invest. Only one person over the age of 30 did not invest for retirement. The factors that contributed to these blue-collar workers’ investment decisions for retirement were based on an employer-provided retirement accounts, the fear of running out of money later in life during retirement, and the addition of new family members. One of the most popular retirement investment products for the participant group, which included mechanics, laborers, and material movers, was the U.S. Treasury Bonds. Other popular investments were mutual funds, 401(k)s, and IRAs. These findings may inform researchers who are conducting a study on the investment decisions of blue-collar workers. The findings can also be beneficial for other blue-collar workers by showing them that other blue-collar workers do invest, and by revealing their rationales in doing so. A Case Study of Blue-Collar Worker Retirement Investment Decisions by Mark Griffin MBA, TUI University, 2010 BS, Park University, 2006 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management Walden University February 2015 UMI Number: 3685617 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. UMI 3685617 Published by ProQuest LLC 2015 . Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, MI 48106-1346 Acknowledgements First, and foremost, I want to thank my loving wife for being supportive of me throughout this process and being understanding as my stress levels went up and down throughout my four years here at Walden. Without her love and support this would have never been possible, and I will be forever grateful to her for helping me out with this and watching our two children while I spent countless hours doing my work. I also want to take some time and say thank you to Dr. Peggy Swigart. She has spent countless hours working with me on my resume/CV, and she also inspired me to choose the finance concentration here at Walden. She was also a wonderful professor at TUI, and she is one of the few people throughout the years who have been there for me and I can never thank her enough for that! Finally, I want to say thank you to the faculty and staff here at Walden University for all of their help and guidance throughout the lengthy process of conferring my PhD. Specifically, I would like to think Dr. Steven Tippins for his guidance and patience with me throughout this process. Had it not been for the guidance that he had provided me I would not have made it this far. I would also like to say thank you to Dr. William Brent for his help and guidance throughout the process. Both Dr.’s Tippins and Brent also spent a fair amount of time speaking with me over the phone trying to help me out as well, and I can never say thank you enough to them for that. I would also like to say thank you to Dr. David Banner for his help as well, and I especially want to say thank you to him for stepping in near the end of the dissertation process. I really appreciate that. Table of Contents Table of Contents ................................................................................................................. i Chapter 1: Introduction to the Study ....................................................................................1 Background of the Study ...............................................................................................2 Problem Statement .........................................................................................................4 Purpose of the Study ......................................................................................................5 Research Questions ........................................................................................................5 Theoretical Foundation ..................................................................................................6 Nature of the Study ........................................................................................................8 Definitions......................................................................................................................9 Assumptions .................................................................................................................12 Scope and Delimitations ..............................................................................................12 Limitations ...................................................................................................................14 Significance of the Study .............................................................................................15 Significance to Practice..........................................................................................15 Significance to Theory ...........................................................................................16 Significance to Social Change ...............................................................................18 Summary and Transition ..............................................................................................20 Chapter 2: Literature Review .............................................................................................22 Literature Search Strategy............................................................................................26 Theoretical Foundation ................................................................................................27 The Blue-Collar Worker ........................................................................................27 Blue-Collar Worker Severance Packages ..............................................................27 i Blue-Collar Worker Unemployment and Mortality Rates .....................................28 Theoretical Framework ..........................................................................................28 Personal Finance ....................................................................................................29 Why People Save .........................................................................................................30 Personal Savings ....................................................................................................30 Retirement ..............................................................................................................31 Social Safety Nets ..................................................................................................32 Prospect Theory ...........................................................................................................34

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